Economic Valuation of Mangrove Forest Area in Kolono Bay South Konawe Regency

International Journal of Scientific & Engineering Research Volume 10, Issue 7, July-2019 2014 ISSN 2229-5518

ECONOMIC VALUATION OF MANGROVE FOREST AREA IN KOLONO BAY SOUTH KONAWE REGENCY

Awaluddin, Usman Rianse, Ayub M. Padangaran, Manat Rahim

Doctoral Program Department of Economic Science Postgraduate Program Halu Oleo University Kendari, 93232, Indonesia email : [email protected]

Abstract-It is greatly necessary to take into account to degradation of resources since any management policies neglecting degradation of natural resources will result inmisleadingpolicies. Thus, it is necessary to conduct a research to determine economic valuation of mangrove forest resources. It is expected that results of this research can support management of coastal areas particularly mangrove forest in order to create conservation and habitat restoration policies. This research aims to determine the economic value on mangrove forest in Kolono Bay. The method used was TEV (Total Economic Value)consisting of use value directly using market value. The use value did not directly use replacement cost approach and option value used benefit transfer approach. Non-use value consists of existence value using WTP (willingness to pay) approach and bequest value used 10 % approach from mangrove direct benefits. Results of the research show that the economic value of mangrove forest in mangrove area of Kolono Bay per year was 22.109.177.695 IDR equal to 17.093.315 IDR/ha/year or equal to 6.217.429 IDR per head of family.

Index Term: economic valuation, mangrove area, Kolono bay

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1 INTRODUCTION ccording to Dixon (1993), both in developed countries However, any programs in implementation of integrated poli- A and developing ones, economic development activities cy approach often face failure, one of which is caused by weak have no adequate attention to maintain natural system design of policies (Vince, 2015). and environmental quality. This is caused by a view that be- Management of resources in coastal areas basically aims to tween economic growth and environmental quality, there are improve social well-being, particularly community of fisher- damage alternatives in environmental quality which are con- men living in coastal areas (Kusumastanto, 2003).It must sidered as the cost that mustIJSER be paid from rapid economic maintain ecological aspects in term of preservation of re- growth. In other words, environmental degradation is a cost sources and ecosystem functions since it serves as the main that must be paid due to economic growth. Actually, such base to achieve the well-being (Arsyadet al., 2007). Therefore, view is a kind of misleading view, since if there is a balanced sustainable management of natural resources and ecosystem attention given to the economic development and environ- services will support improvement of fishermen and fish mental quality, there will not be such conditions. farmers which most of them live in coastal villages and small Natural resources and environmental management is abso- islands. lutely related to biophysics characteristics, role of a ecosystem Mangrove areas have capability to provide food supply in creating environmental services, role of actors involving in (Sasekumaret al., 1992; Islam and Haque, 2004; Nagelkerkenet management and ownership regime of natural resources and al., 2008; Saengeret al., 2013), fish enlargement area (Barbier, environment. Ecosystem and human interaction serves as an 2003; Mansonet et al., 2005; Allen et al.,2012), protection place important aspect in environmental science. Ecosystem pro- for the biotasfrom predators (Nagelkerkenet al., 2008), as a cesses and ecosystem functions have many benefits, one of habitat for fish (Sasekumaret al., 1992; Barbier, 2003, Saengeret which is that energy and water cycle will support production al., 2013), both all of their life cycles or part of its (Nagelkerk- of environmental services. Ecosystem services are able to pro- enet al., 2008). As a fish enlargement area, mangrove plays an vide an important economic value (Costanza et al. 2014) that important role in supporting commercial fisheries (Barbier can be useful for human life. In coastal areas, there are man- 2000; Allen et al., 2012). grove ecosystems creating environmental services and thus, it Kolono Bay is one of the coastal areas in South Konawe is necessary for a good management so that it can be utilized Regency, Southeast Sulawesi Province. Kolono Bay is an area for the interests of human and environment. Management of with a fairly high level of utilization in coastal area utilization coastal areas is related to the role of ecosystem ser- as a settlement area spread in Lambangi, Tumbu-Tumbu Jaya, vices.Dahuriet al. (1996) stated that integrated management of and Rumba-Rumba villages, as well as a center of brackish coastal and sea resources is an approach involving two or water pond area (shrimps and milkfish) in which changes on more resource ecosystems and integrated utilization activities mangrove vegetation conditions in Kolono Bay are caused by in order to achieve sustainable coastal area development. mangrove land function conversion into aquaculture area

(Rahman, 2017). Results of image processing using Citra Landsat-5 in 1988 and Citra Landsat-8 in 2016 and after overlayanalysis of mangrove density in 1988 and mangrove density in 2016, it is obtained changes on mangrove vegetation of Kolono Bay in 1988

– 2016, in which it shows great amount reduced of mangrove vegetation. A reduced area of mangrove for 28 years is known by589,95Ha from initially 1.576,98 Ha in 1988 meanwhile the area of mangrove vegetation is still 987.03 ha, which there is a protected forest area with an area of 41.3 ha. The reduced area of mangrove vegetation in Kolono Bay is due to the large conversion of mangrove land into aquaculture areas (outside protected forest areas). Aquaculture areas in Kolono Bay are Figure 2.1.Total Economic Value spread in Kolono Village, Mondoe Jaya Village, Awunio, Roda Pearce and Moran 1994; Turner et al., 1994 and Lamapu Village (Rahman, 2017).

Conversion rate of mangrove vegetation into agriculture The economic value framework often used in the economic ponds will be even greater in the future as outlined in the valuation of natural resources including mangroves is the con- Konawe Selatan Regency Spatial Planning, namely the total cept of total economic value (TEV); in an outline manner, it is pond area in 2033 is targeted to be 21,921 Ha in seven sub- grouped into use value and non-use value (Pearce and Moran districts for aquaculture development including Kolono Bay 1994; Turner, Pearce and Bateman, 1994). The use value is di- (Kolono Regency and East Kolono) (Southeast Sulawesi Ma- vided into direct use value, indirect use value and option val- rine and Fishery Office, 2017). ue. The non-value values are divided into existence values and It is greatly necessary to take into account to the resource bequest values. degradation, since management policies neglecting natural There are a great number of mangrove economic function resource degradation will result in misleading policies. There- benefits for humans, both direct products (such as root mate- fore, it is important to conduct a study to determine economic rials, building materials, fishing traps, agricultural fertilizers, valuation of mangrove forest ecosystem resources, and it is paper raw materials, food, medicine, beverages, and textiles) expected that results of this study can support the manage- and indirect products (such as recreation places and foodstuffs ment of coastal areas, especially mangrove forests, in order to and products that are produced mostly to be utilized by the carry out conservation and habitat restoration policies. This community. Another important use value of ecosystems is a study aims to determine the economic value of mangrove for- variety of aquatic organisms, some of which have commercial ests in Kolono Bay. value in selecting mangrove habitat as their place of life, namely 30% of marine fisheries production depends on sus- 2 LITERATURE REVIEWIJSER tainability mangrove, because mangrove forest is a breeding Value means perception of an object at a specified place and time. place for fish species with high level of commercial value While perception is the view of individuals or groups on an ob- (Ministry of Environment, 2008). ject according to the level of knowledge, understanding, expecta- tions and norms. Therefore, there are greatly various values of 3 RESEARCH METHOD mangrove ecosystems, depending on the perceptions of each in- 3.1 Research Location and Time dividual or community. According to Muif (1991), he stated that The research location is a case study with the research objects value is a benchmark price that can measure the economic value on the mangrove forests in Kolono Bay, South Konawe Regen- of natural resources based on function, use, potential, and carry- cy, Southeast Sulawesi Province. The research locations in- ing capacity of development according to time and area where the cluded villages / sub districts in KolonoBay (Kolono District resource is located, and the amount of demand and supply in the and KolonoEast District). This research was conducted for 6 economic mechanism the market is operated. months starting from January to June 2019. Measuring economic valuation of mangrove forests can use a measurement model of the value of resource economics, which 3.2 Types of and Sources of Data traditionally, there will be values based on interactions between Types of data used in this research are qualitative data and human as a subject and an object (Pearce and Moran 1994; quantitative data. According to Sarwono (2006), qualitative Turner et al., 1994). Each individual has a number of values that data is a type of descriptive data in the form of symptoms in are said to be mastery values as the basis of individual prefer- the form of documents, photographs and notes during the ences. In the end, the object value is determined by various as- study. Quantitative data is data in the form of statistical fig- signed values. Economic values in natural resources, especially ures or in quantitative data. This study requires needs in pri- mangrove ecosystems play a very important role in determining mary data and secondary data in the implementation of activi- management policies, so that there will beefficient and sustaina- ties. ble allocation and alternative management. The total economic The collection of the two types of data uses a combination value modelcan be seen in Figure 2.1. of the following techniques:

1. List of questions in the form of a questionnaire that can be 3.4 Quantification of All Benefits and Functions into used to collect data directly from research respondents. Money Valu 2. In-depth interviews, in the form of in-depth interviews This stage is conducted after the identification on all of the conducted directly with the respondents in this study. benefits and functions of the mangrove forest ecosystem. The 3. Field survey, in the form of visits to research sites (local qualification techniques used are: communities and ecosystems mangrove in the Kolono Bay 1. Market Value: this approach is used to quantify prices of area). various commodities that can be directly marketed. This approach is conducted to assess direct benefits of man- 3.3 Data Collection Method grove forests consisting of forest product and fishery The method of data collection is conducted by triangulation product values. method), which is by collecting data using more than one 2. Indirect Prices: this approach is used if the market mecha- method independently, consisting of field observations, inter- nism fails to provide value to the component of the studied views and literature studies. This aims to obtain more com- resources, for example because the component does not yet plete and accurate data about the studied objects. have a market. This approach is used to quantify value of The population in this study is the community related di- indirect benefits of mangrove forest ecosystems. rectly or indirectly to the utilization of mangrove forest eco- 3. Contingent Valuation Method: It is used to quantify bene- systems; with sub-populations are forest products, fishermen fits of the existence of the studied ecosystems. For that rea- and beneficiaries of the existence of mangrove forests. By tak- son, in the survey, it is used two models of questions, ing into account the population characteristics, determination namely open questions and multiple choice questions. of the respondents was carried out by stratified random sam- 4. Total Economic Value: It is sum of all of the identified ben- pling based on stratification of the types of activities in using efits, namely the value of direct benefits, the value of indi- the mangrove forest ecosystem. rect benefits, the value of selected benefits, existence value Data collection in the field aims to obtain information as and bequest value. much as possible related to the socio-economic conditions of the community in the utilization of mangrove forest ecosys- 3.5 Data Analysis tems. In conducting this data collection, there will be used Total economic benefit value is a sum of all of the identified observation techniques, interviews, and data checklists to the benefits of the studied mangrove forest which is formulated community and related stakeholders, as well as direct field by the following formula: observations. The sampling techniques for sample determination in this study are purposive sampling and snowball sam- NET =NGL + NGTL + NP + NK + NW pling. In which: The purposive sampling method is conductedby taking NET = Total Economic Value samples based on the reason that key people that are selected NGL = Direct Use Value from the community and government officials, especially NGTL = Indirect Use Value those involved in processingIJSER fishery resources and mangrove NP = Option Value ecosystems can support the development of infrastructure and NK = Existence Value policies in this study. The snowball technique will be conduct- NW = Bequest Value ed in order to determine the informants by contacting the first key figure from the selected community and related stake- 3.5.1 Direct Use Value holders and then looking for the following key figure from Direct use value is the value obtained from benefits direct- information given by the first key figure and so on until the ly taken from mangrove forests, such as the results of fire- required data is fulfilled. Through this technique, it is ex- wood and catches (fish, shrimp, crabs and shellfish). The value pected that there will be adequate information. of direct benefits obtained by communities around mangrove The number of sample units for fish fishermen respond- forests (local direct use value) is approached with net income ents, related stakeholders and other fishermen (people who generated for local use (Sathirathai, 2003). The formulation is use mangroves) is determined based on the proportion estima- as follows: tion equation as follows (Nazir, 2003): NGL = In which: TNGL = Total direct benefits (Rupiah) NGL1 = Firewood value (Rupiah) NGL 2 = Fish fishing value (Rupiah) NGL 3 = Shrimp fishing value (Rupiah) NGL 4 = Crab fishing value (Rupiah) Notes: NGL 5 = shellfish fishing value (Rupiah) n = number of desired sample unit, N = total of types of 1) The direct use value of mangrove forest from its function respondents, as a producer of firewood is estimated through the ap- D = B2/4 (Bis bound of error = 0,10 ), and p (estimatorof proach of the number of firewood produced in 1 (one) year population proportion = 0,1). with the following equation:

NEKb = QKb x PKb x RTKb–CKb tures, namely wave breakers (Suryono, 2006), biological indi- Which it is known that NEKb is the economic value of rect benefits, namely as providers of organic materials for bio- firewood (Rp / year), QKb is the value of the volume of ta living in mangrove forests (Adrianto et al., 2004) and as a wood produced (m3 / year), PKb is the price of firewood place for spawning and growing (Suryono, 2006) and indirect (Rp / m3), RTKb is the number of households as firewood ecological benefits which are estimated from the presence of processing wood (KK ), CKb is the cost of processing fire- carbon uptake. The formulation is as follows: wood (Rp / year). 2) The direct use value of fishing is the economic value ob- NGTL = tained from fish / shrimp fishing approached by the fol- In which: lowing equation: TNGTL = total of indirect use value (Rupiah) NEPi = QPi x PPi x RTPi–Cpi NGTL 1 = retaining abration (Rupiah) Which it is known that NEP is the economic value of fish / NGTL 2 = retaining seawater intrusion (Rupiah) shrimp fishing (IDR / year), QPi is the number of fish / NGTL 3 = nutrient supply (Rupiah) shrimp catches (kg / year), PPi is the price of fish / shrimp NGTL 4 = carbon storage (Rupiah) (IDR / kg), RTPi is the number of fishermen catching fish / shrimp (people), and CPi is the cost of fish / shrimp fish- 3.5.3 Option Value ing (IDR / year). The option value is the type of other use value either directly 3) The direct value of the shrimp catches is the economic val- or indirectly because it relates to the use of mangrove in the ue obtained from the shrimp approached by the following future. The calculated option value is the benefits of mangrove equation: forest biodiversity and habitat conservation. Its value is esti- NEPi = QPi x PPi x RTPi–Cpi mated by referring to the biodiversity value of mangrove for- Which it is known that NEPi is the economic value of ests in Indonesia from existing research. In accordance with shrimp fishing (Rp. / Year), QPi is the number of shrimp the results of Ruitenbeek's (1992) study, the mangrove forest catches (kg / year), PPi is the price of shrimp (Rp / kg), option value was US $ 1,500 / km2 / year (US $ 15 / ha / RTPi is the number of fishermen catching shrimp (people), year) assuming that the mangrove forest was ecologically im- and CPi is the cost of fishing shrimp (IDR / year). portant and maintained. 4) The direct use value of crab fishing is the economic value NP = NPPL obtained from fishing crabs, approached by the following NPPL = Biodiversity Option Value equation: NEPk = QPk x PPk x RTPk–CPk 3.5.4 Existence Value Which NEPk is the economic value of fishing crabs (IDR / The existence value is the benefit felt by the community from year), QPk is the number of crab catches (kg / year), PPk is the presence of mangrove forests after other benefits that have the selling price of crab catches (IDR / Kg), RTPk is the been excluded from the analysis. In general, the approach number of fishermen fishing crabs (people), and CPk is the techniques are conducted by interviewing households by ask- operational cost of fishingIJSER crabs (Rp. / year). ing for their willingness to pay (WTP) in maintaining envi- 5) The direct use value of shellfish collection is the economic ronmental assets in the present (Maryadi, 1998). The existence value obtained from shellfish, approached by the following benefit value is more seen in mangrove forests in the Kolono equation: Bay region. To find out the WTP existence benefit value, it is NEPkr = QPkr x PPkr x RTPkr–CPkr using the Contingent Valuation Method (CVM). The formula- Which it is known that NEPkr is the economic value of tion is as follows: shellfish fishing (IDR / year), QPkr is the number of shellfish catches (kg), PPkr is the selling price of shellfish catch- n NKi es (IDR / Kg), RTPkr is the number of fishermen fishing NKi = ∑ shellfish (people), and CPkr is operational costs of fishing i=1 n shells (Rp. / year). In which: 3.5.2 Indirect use Value NKi = Existence value of -i respondent Indirect use value is the value that is felt indirectly on the n = Number of samples or respondents goods and services produced by natural and environmental resources (Fauzi, 2002). The value of benefits is not directly processed using the replacement cost method, which the cal- 3.5.5 Bequest Value culation is conducted by calculating the costs that will be in- The bequest value of mangrove forests cannot be assessed by a curred to replace the function of the mangrove if this man- market approach, therefore the bequest value can be calculat- grove is removed. Indirect benefits from mangrove forests are ed using an approximate approach. Calculation on the bequest obtained from an ecosystem indirectly, in the form of physical, value is 10% of the value of direct mangrove benefits (Ruit- biological, and ecological benefits (Suryono, 2006). Physical enbeek, 1992). indirect benefits, namely as a retaining coastal abrasion NW = 10% x Direct Use Value (NGL) (Fahrudin, 1996) are assessed from the creation of water struc-

4 RESULTS AND DISCUSSION Based on the results of data collection on the direct benefits of fishing, almost every day people in KolonoBay take fish Calculation of the economic value of the mangrove ecosystem around the mangrove forest ecosystem with the number of benefits aims to determine the amount of the value of the var- fish catchers successfully recorded is 15 people. The results of ious benefits. Based on the study results, the economic valua- direct interviews with fishermen fishing, the number of fish tion of the mangrove forests in Kolono Bay is as follows: production obtained in the mangrove forest ecosystem of Ko-

lonoBay is 2,263 kg / year / person divided into various types 4.1 Use Value of fish such as mullet fish, malajang fish, white fish and others, The use value in this study consists of direct use value, indi- with selling price is an average of Rp. 17,857 / kg and pro- rect use value and option value. The direct use value is the cessing or operational costs of the fishing is an average of Rp. value of the mangrove forest as the natural resources consist- 1,848,000 / year / person. So that, the economic value of man- ing of the use of firewood and fishery production. Whereas groves can be obtained as a direct benefit of fishing isRp. the indirect use value consists of retaining abrasion, retaining 578,402,449 / year. seawater intrusion, nutrient supply, and carbon storage. The Result of the data collection on the direct benefits of option value consists of biodiversity value. shrimp fishing by fishermen is obtained by the number of

shrimp catchers who is successfully recorded is 10 people. 4.1.1 Direct Use Value Based on the information directly taken from the fishermen of The direct use value is a value that can be directly felt by the fishing shrimp, it is found that the number of shrimp produc- community around the mangrove forest ecosystem. These tion obtained from the catches in KolonoBay mangrove forest values include utilization of firewood, fishing of fish, shrimp, ecosystem is an average of 2,244 kg / year / person, with an crabs and shellfish of various types. Table 4.1.is a cumulative average selling price of Rp. 40,000 / kg and processing or op- table of commodity production values in the mangrove forest erational costs of the fishing is an average of Rp 2,310,000 / ecosystem on Kolono Bay coastal area. year / person. So that, the economic value of the mangroves . that can be obtained as a direct benefit of fishing shrimp is Rp.

874,500,000 / year.

Based on the results of data collection on the direct benefits

of fishing mangrove crabs, almost every day the KolonoBay

community take mangrove crabs around the mangrove forest

with the number of catchers of mangrove crabs that are rec-

orded is 65 people. The results of direct interviews with fish-

ermen fishing mangrove crabs show that the number of man-

grove crab production obtained in Kolono Bay is an average of

924 kg / year / person, with an average selling price is Rp. About the use of mangrove wood as firewood, most of the 128,750 / kg and processing or operational costs of fishing is respondents said it was only for the interest of the household, IJSERan average of Rp. 15,180,000 / year / person. So that, the eco- and there are some to be traded. The Kolono Bay community nomic value of mangroves can be obtained as a direct benefit usually sells mangrove woods as firewood with prices ranging of catching mangrove crabs is Rp. 6,746,025,000/year. from Rp. 3,500 / bundle or Rp. 1,249,500 / cubic. Thus, the The results of data collection on the direct benefits of man- market price for firewood uses the average selling price data grove forest from shellfish fishing in KolonoBay obtainthat the from the respondents. The production volume of taking fire- number of shellfish catchers which are recorded is 7 people. wood by the community is an average of 0.76 cubic / month / Based on the direct information from the respondents, it is person or 9.13 cubic / year / person with a frequency of tak- found that the number of shellfish production from fishing ing almost every day or 22 days in a month. The number of shellfish in KolonoBay mangrove forest ecosystem is an aver- users of firewood from mangrove forests is 20 people. If it is age of 283 kg / year / person, with an average selling price of multiplied by the forest utilization community in Kolono Bay Rp. 15,000 / kg. So that, the economic value of the mangroves with the average production volume taken, the number of can be obtained as a direct benefit of fishing shellfish isRp. mangrove forest production for firewood is Rp. 228,060,000 / 29,700,000 / year. year.

For firewood, some respondents said that there was a clear 4.1.2 Indirect Use Value market price of IDR 3,500 / bundle. The use of mangrove The indirect use value is obtained from the benefits of man- wood is usually intended as an alternative substitute for fuel grove forests as an indirect ecosystem, such as: retaining oil when there is an event or celebration in the Kolono Bay coastal abrasion, retaining seawater intrusion, feed providers, community, but there is also a small proportion of people who nutrient supply and carbon storage, non-fish marine fishing, use firewood for their daily needs, thus there is a relatively spawning, growing and place for something to eat. The calcu- small number of mangrove wood processing in Kolono Bay. lated indirect use values in this study are retaining coastal There is also a small number of mangrove wood production abrasion, retaining seawater intrusion and nutrient supply. volumeusing as an alternative substitute for fuel, since taking The approach used to estimate the economic value of the / processing mangrove wood as firewood is adjusted to the mangrove forests as the indirect use values is by replacement needs by the community. IJSER © 2019 http://www.ijser.org International Journal of Scientific & Engineering Research Volume 10, Issue 7, July-2019 2019 ISSN 2229-5518 costs. The indirect use value of the mangrove forest ecosystem (Suryono, 2006; Apung, 2011), containing nitrogen (N) 10.5 kg benefits can be seen in Table 4.2 as follows: per hectare per year or equivalent 23.33 kg of urea fertilizer, and phosphorus nutrient of 4.72 kg per hectare per year or equivalent to 13.11 kg SP-36 fertilizer. The price of urea fertilizer in the Kolono Bay region is Rp. 1,900, - / kg and SP-36 of Rp. 2,300 / kg, the economic value of the litter produced is Rp. 74,480, - per hectare per year. The areaof the mangrove for- estin TelukKolono is 1,293.44 Ha (results of image data processing, 2019). So, the approach to the value of mangrove forests as a nutrient suplier can be calculated by Rp. 96,335,411 / year (Table 4.2). The ecological benefit of carbon absorber by mangrove forest ecosystems with potential carbon values is ranging from The indirect use value of mangrove forest from its function 3,258.34 - 3,957.44 kg per hectare, assuming an average value as a retaining abrasion and seawater intrusion is estimated of 3,607.89 kg per hectare per year (Suryono, 2006; Apung, from the cost of onstruction of breakwater and retaining sea- 2011). The price of 1 ton of carbon is UD $ 15.5 or Rp. 221,340, - water. The economic value of coastal abrasion with the use of (assuming the exchange rate of 1 US $ = Rp. 14,280 on June 13, breakwater structures, according to the basic value of building 2019). Thus, the total carbon value stored in the mangrove calculations by the Department of Public Works and Spatial forest reaches Rp. 798,570, - per hectare per year. The area of Planning of South Konawe Regency in 2019, with length of 1 mangrove forest in KolonoBay is 1,293.44 Ha (results of image m, width of 1 m and height of 2.5 m (1 mx 1 mx 2 , 5 m) for 15 data processing, 2019). So, it can be calculated the approach of years endurance is Rp. 688,000,-. Breakwater as a retaining the ecosystem value of mangrove forests as carbon absorber abrasion is calculated based on the length of the Kolono Bay by Rp. 1,032,902,381/year (Table 4.2). coast. The length of the KolonoBay coast is 53,217 meters (image processing results, 2019). For that reason, it can calculate 4.1.3 Option Value the approach of mangrove forest ecosystem value as a retain- The option value in this study refers to the other usevalue of ing barrier by Rp. 35,548,956,000 (Table 2). Based on the same the mangrove forest ecosystem. The calculation of the option data source, the length of the dam resistance is 15 (fifteen) benefit value is using the transfer benefit approach namely by years, so that the benefit is divided by 15 years, then the indi- an approach using the use value of the biodiversity referring rect benefit of mangrove forest as a retaining abrasion is to Ruitenbeek's (1992) biodiversity value of US $ 15 ha / year equivalent to Rp. 2,369,930,400 / year. which is then transferred to obtain an estimate of the option The indirect use value for the benefits of mangrove as a re- value of the benefits at the study location. taining seawater intrusion is obtained from the approach to Mangrove forest ecosystems in the Kolono Bay region re- clean water needs from the Kolono Bay community. By the cently are not used for other uses, therefore the option value assumption that if the mangroveIJSER forest is removed, the com- for the Kolono Bay forest area is seen only from its biodiversi- munity will find it difficult for clean water sources since there ty value. By the increase in population, mangrove logging is no any function of mangroves for retaining seawater intru- cannot be under control which can result in losses of various sion and clean fresh water sources are contaminated with sea types of flora and fauna in the mangrove ecosystem, therefore, water. As we know, sea water has a high salt content which the option value measured in this study is to calculate the bio- makes it unsuitable for human consumption. Thus, the calcu- diversity and fauna values of mangrove ecosystems. lation is approached with the use of clean fresh water accord- The option use value in the mangrove forest ecosystem in ing to the needs of each family every day (Harahab, 2011). The Kolono Bay can be approached using the benefit transfer approach is calculated through the number of family head method, namely by assessing the benefit estimates from other located in Kolono Bay who use water for drinking and cook- places (where resources are available) then the benefits are ing water. The calculation results obtained from the costs to be transferred to obtain a rough estimate of the environment spent by one family per / day to buy water at the price of the benefits. The method is approached by calculating the benefits assumption of Rp. 5,000 / gallon. The number of family heads of biodiversity (biodiversity in this mangrove area). According in Kolono Bay is 3,556 households (BPS Konawe Regency in to (Ruitenbeek, 1992) Indonesian mangrove forests have bio- Figures, 2018). For this reason, the approach to the mangrove diversity value by US $ 15 per ha per year. This value can be forest ecosystemvalue can be calculated as a retaining sea- used throughout the mangrove forests in the region in Indo- water intrusion by Rp. 6,489,700,000 / year (Table 4.2). nesia if the forest ecosystems are ecologically important and The indirect use value for the mangrove benefits as a nutri- remain naturally preserved. ent supplier as a function of maintaining the stability of food The total value of the biodiversity benefits is obtained by cycle in mangrove forests is approached by the value of nutri- multiplying the benefits value namely US $ 15 per ha per year ents produced in the form of mangrove litter as a supporting with the exchange rate of the rupiah against the US dollar, ecosystem productivity (Suryono, 2006; Apung, 2011). Every which is Rp. 14,280 (on June 13, 2019), so that a value of Rp. hectare of mangrove forest is able to produce 13.8 tons of litter 214,200 / ha is obtained. These results are multiplied by the per year or equivalent to 4.85 tons of dry weight per year total area of the mangrove forest ecosystem in KolonoBay cov-

IJSER © 2019 http://www.ijser.org International Journal of Scientific & Engineering Research Volume 10, Issue 7, July-2019 2020 ISSN 2229-5518 ering an area of 1,293.44 Ha, thus the total value of the biodi- of the FGD (Focus Group Discussion) with community leaders versity benefits in the mangrove forest in Kolono Bay is Rp. living in the targeted area. The closed ended question model 277,054,848 / year (Table 4.3). allows the respondents to have an idea of the costs of conservation programs so that they are not under / over value. The way to ask for a willingness to pay is by using a payment card model (Fauzi, 2014), the respondents are given an offer to use the card that contains the value of money starting from the lowest to the respondents’ limit stating no for the offered value. Results of this bidding show that the highest choice by the respondents is 53.85% willing to pay Rp. 10,000 / month. The 4.2 Non-Use Value second highest choice is 19.23% by the respondents willing to Non-value is one of the variables of total economic value. The pay Rp. 15,000 / month. There is a high different ofthe first non-use value obtained from this study consists of existance and second highest price given which is allegedly due to the value, and bequest value obtained using the Willingness to lack of community knowledge about the importance of man- pay (WTP) method or the willingness to pay for the existence grove forest preservation program. The lack of counseling ac- value and 10% of the direct use value for the bequest value. tivities and community involvement in the mangrove forest planting program is seen as a problem, so there is relatively 4.2.1 Existence Value low level of willingness to pay by the respondents. The total The existence value of mangrove forests is obtained from the WTP / month is then accumulated into annual amount so the value of willingness to payby the respondents for the existence size of the mangrove conservation program can be obtained of mangrove forests in their area. Before this question is asked, which can be subsidized by the community for one year. The the respondents are given a hypothetical market scenario details of the PAPs are found in Table 4.4 as follows. about the existence of mangrove forests. The following are the scenarios which are created to assist the respondents in order to understand the question of willingness to pay: “Mangrove forests serve as a retaining abrasion, in which there are living several animals such as crabs, shrimp, shellfish and as a breeding ground for several types of fish. The existence of mangrove forests also benefits the surrounding community in ful- filling firewood and building timber for shelter. At present, most of the mangrove forests on the coastal area of KolonoBay are in a damaged condition leading to many losses. The number of fish / shrimp / crab / shellfish catches decreases and coastal abrasion is increasinglyIJSER unstoppable and damages the coast and transportation routes. Seawater intrusion also enters houses and causes brackish to sources of fresh water for the Based on the average WTP / year value of Rp. 162,462, it community. If there is a preservation of mangrove forests by can be obtained the WTP value of the KolonoBay mangrove conservation so will be no the aforementioned consequences, forest ecosystem by multiplying the population in Kolono Bay, then are you willing to set aside a portion of your income for namely 15,640 people, then the total WTP per year can be ob- these activities so that the mangrove forest is still exists and is tained at Rp 2,540,898,462/year or equivalent Rp. 1,964,450 / always maintained. " ha / year. WTP value describes the amount of the minimum Based on the hypothetical market mentioned above, then cost that a person can afford to pay as a form of customer sat- to obtain mangrove ecosystems that are preserved and can isfaction with the resource. Results of the research on the eco- provide benefits, the respondents are asked to contribute to nomic valuation of mangrove forests in Bengkalis Riau obtain the mangrove forest conservation program. The program re- the existence value of the mangrove forests by Rp. 31,967.87 / quires funds and it is asked whether the respondents are will- ha / year (Qodrina, 2012). When compared to the data from ing to contribute to the program. Based on these questions, the the research results, the community assessment in KolonoBay respondents are willing to set aside a portion of their income is higher. for the mangrove forest conservation program in their area. This shows that most people have a concern for the existence 4.2.2 Bequest Value of mangrove forests. The bequest value of the mangrove forests cannot be as- Based on the willingness to pay by the respondents for the sessed by a market approach, therefore the bequest value can conservation program in mangrove forests, then it is given a be calculated using an approximate approach. The calculation further question, about the amount that they are willing to of the bequest value is 10% of the direct use value of the man- pay. The respondents are given a price bid, ranging from Rp. grove forest (Ruitenbeek, 1992). The bequest value of the 2000, Rp. 5000, Rp. 10,000, Rp. 15,000, Rp. 20,000, Rp. 25,000 mangrove forest ecosystem in KolonoBay is presented in Table and Rp. 50,000. The bid values given are based on the results 4.5. as follows:

ties at the coastal area. This indicates that there have been exploitation and degradation of mangrove forests for a long time and the impacts are felt by the community at this time which then it reduces the use value of mangrove forests. The people's appreciation for the existence of mangrove forests is relatively small. The ecosystems in the mangrove forests in KolonoBay area, which are now increasingly reduced in size, must be rehabili- tated immediately. Reforestation of damaged areas, both due 4.3 Total Economic Value (TEV) to logging and land conversion that does not pay attention to The total economic value of the mangrove forests in Kolono environmental sustainability and other consequences must be Bay is the sum of use values and non-use values. The use val- addressed immediately remembering there are a big economic ue consists of direct use value, indirect use value and option value that can be obtained in the mangrove forest area. value, while the non-use value consists of the existence use value and bequest value. The total economic value of the an- 5 CONCLUSION AND RECOMMENDATION nual mangrove forest in Kolono Bay is Rp. 22,109,177,695/year (Table 4.6.). If compared to all values ranging from the direct 5.1 Conclusion value, indirect use value, option value, existence value and The economic value of mangrove forests in the Kolono Bay bequest value of the total economic value, the indirect use area per year is Rp. 22,109,177,695 or equivalent to Rp. value has a greater value than the other values. This is because 17,093,315 / ha / year or equivalent to Rp. 6,217,429 per fami- the indirect use value has many benefits that are needed by ly head. The total economic value consists of direct use value the community. such as benefits in the field of fisheries and forestry of Rp. 8,456,687,449/year, the indirect use value as measured by the value of the construction of breakwater, retaining seawater intrusion, supply of organic materials and carbon absorber by to Rp.9,988,868,192, the option value as measured by the benefits of biodiversity level is Rp277,054,848, the existence value as calculated from the willingness to pay by the community is Rp 2,540,898,462 and the bequest value as measured based on 10% of the direct use value is Rp. 845,668,745.

5.2 Recommendation The economic values that can be obtained in the mangrove When compared to the total economic value of the man- forest resources play an important role in determining mangrove forests in other regions,IJSER this value is relatively smaller, agement policies. Basically, the management of mangrove for- for example the total economic value in Mahakam Delta man- est resources aims to improve the social well-being of the en- groves reaches Rp. 503,071,398,869.20 (Wahyuni, 2013). The tire community, especially the small fishing community living total economic value of mangrove forests on the Arafura Sea in the mangrove area of Kolono Bay. This role should be bal- coast in 2015 was Rp. 213,344,656,759 (Widiastutiet, al., 2016). anced with a balanced investment in the conservation of man- The value of the mangrove forest in Buton Regency, Southeast grove resources. The economic value of the mangroves can Sulawesi, reached Rp. 204,378,959,794 (Fitrawati, 2001). But increase public investment in the form of knowledge on the the economic value of mangroves in this study is not much existence value of the mangrove resources. Therefore, this different when compared to the total economy value of man- value can be the basis of policy holders in managing mangrove forests in the North Minahasa region of Rp. grove forest resources so that the sustainability of mangrove 10,888,218,123 (Ofe and Benu, 2011) or in Bengkalis Riau forests is maintained so that they can still produce environ- which was only Rp. 1,409,454,390.00 (Qodrina, 2012). Even mental services and therefore, it is greatly necessary for a with the economic value of mangrove forests in Thailand, proper management in order that they can be used for the in- which is only 89,127,478 THB (Thai Baht) or around Rp. terests of human and environmental to achieve sustainable 34,296,470,832.20 (Jesdapipat, 2012). If the total economic value coastal development especially in the Mangrove Area in Ko- is divided by the number of family heads in Kolono Bay, defi- lono Bay, South Konawe Regency. nitelythe economic value will be smaller, only Rp. 6,217,429 The economic values in mangrove forest resources can also per family head. This value is greatly different compared to be taken into consideration in the making of the natural re- the results of research on the economic value of mangroves in source balance, including by including the degradation of the Bintuni Beach area which is almost Rp. 1.9 billion rupiah mangrove forest resources. This is in accordance with the per family head (Ruitenbeek, 1992). This is presumably be- mandate of the Law of the Republic of Indonesia Number 32 cause there has been a shift in the conservation value at the of 2009 concerning Environmental Protection and Manage- community level as well as the reduced ecosystem services ment, which covers the balance of natural resources and the provided by mangrove forests to the surrounding communi- environment, as well as the compilation of gross domestic

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